Soft drinks maker Coca-Cola Amatil has sold its plastic bottle manufacturing operations in Australia and New Zealand to Visy Industries for AUS$157 million (€90m), according to a report by IndustrySearch.
Coca-Cola Amatil confirmed the sale of all its PET manufacturing assets to Visy, with the two companies signing a long-term supply agreement.
Visy will produce Coca-Cola Amatil's PET bottle requirements for Australia and New Zealand and its PET preform requirements for Papua New Guinea and Fiji.
"The agreement with Visy protects CCA's long-term conversion cost of PET bottles resulting in a neutral impact on earnings before interest and tax from the transaction," a company spokesperson said.
CC-Amatil announced earlier on in the year that it was in advanced talks with Visy on the sale of its PET manufacturing sites, which employ approximately 250 people.
"The transaction will improve CCA's return on capital employed and earnings per share, for 2002 and beyond, by selling non-core assets and removing the need for future investment by CCA in PET self-manufacture," Coca-Cola Amatil managing director Terry Davis said.
"The sale reflects our core focus on manufacturing, distribution and sale of non-alcoholic ready-to-drink beverages."